On Oct 4, 2016, Terex Corporation (TEX - Free Report) was downgraded to a Zacks Rank #5 (Strong Sell). Going by the Zacks model, companies holding a Zacks Rank #5 are likely to underperform the broader market.
Why the Downgrade?
On Aug 1, 2016, Terex Corporation posted dismal results for the second quarter of 2016 wherein its top and bottom line numbers compared unfavourably with the year-ago quarter figures.
The company reported adjusted earnings per share of 64 cents and revenues of $1.3 billion. On a year-over-year basis too, the metrics registered steep declines of 18% and 10%, respectively.
Terex now expects earnings per share from continuing operations to be between 85 cents and $1.15 in 2016, excluding restructuring and other unusual items. The Zacks Consensus Estimate stands at 96 cents. Additionally, the company provided guidance of net sales of $4.3 billion–$4.5 billion for full-year 2016. The Zacks Consensus Estimate is pegged at $4.44 billion. This reflects the removal of MHPS earnings from continuing operations and the effect of unabsorbed corporate management costs, but does not display any of the benefits of the MHPS sale which will be realized upon completion of the sale.
TEREX CORP Price and Consensus